Mediated and moderated model of the willingness to pay for halal transportation

Abstract

PurposeThis paper aims to identify the factors of willingness to pay for halal transportation among Muslim consumers in Malaysia by extending the theory of planned behaviour with knowledge and religiosity.Design/methodology/approachApplying a purposive sampling method, data were gathered from questionnaires distributed to Muslim consumers at Malls in Kuala Lumpur and Putrajaya. From 250 Muslims who were approached, 200 respondents agreed to answer the questionnaire. SMART-PLS 3.2.8. was used to analyse the data for this study using a structural equation modelling (SEM) approach.FindingsAttitude (ATT), Subjective Norm (SN) and Perceived Behavioural Control (PBC) have a positive relationship with the Willingness to Pay (WTP). However, religiosity is found as an insignificant factor towards the WTP. Knowledge and religiosity are significant predictors of the attitude. Attitude is found to have a mediating effect on the relationship between knowledge and the WTP, and for religiosity towards the WTP. Awareness moderates the positive relationship between ATT and the WTP for halal transportation services. Meanwhile, awareness is found as an insignificant moderator between SN and the WTP, and for the PBC and the WTP.Practical implicationsThe findings provide useful information on the WTP for halal transportation. Related parties such as the government, halal transport service providers and customers can use these findings to plan further action to enhance the WTP for halal transportationOriginality/valueThe study reveals the capability of the TPB to identify the factors of WTP for halal transportation among Muslim consumers in Malaysia. The findings also show the moderation effects of awareness on the TPB. The findings also enrich the literature on the WTP in halal studies